Google has recently relaxed its restrictions on the use by advertisers of third-party trade-marks in text ads displayed with search results. Previously Google required that advertisers either own the trade-marks used in their ads or have documented permission from a third-party trade-mark owner before its marks could appear in a Google ad. According to a Google blog post, Google was of the view that prohibiting use of trade-marks as it did was equivalent to a supermarket ad in a Sunday newspaper that listed generic products like "discount cola" instead of the actual products for sale.
Already under fire by brand owners for allowing advertisers around the world to bid for search terms that are registered trade-mark, Google’s latest move will likely further worsen relations with trade-mark owners. In Texas, one software company is already attempting to launch a class action lawsuit against Google on behalf of all Texas trade-mark owners.
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